Weekly Dubai real estate news digest. Issue 23

08.12.2013
Developing a legacy
Welcome to the twenty-third issue of Market Insight, your weekly guide to what's happening in the Dubai real estate market.

 
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MARKET INSIGHT. Weekly guide to Dubai's property scene
Issue 23 |  December 8, 2013

Developing a legacy

With the UAE gearing up to host the Expo 2020, new infrastructure needs to be developed and these will go on to serve the country and result in a sustained period of opportunities for workers in the region. Like for other nations that have hosted world expos before, the hope is that the Expo 2020 will leave behind a legacy that the UAE can use to put itself on the map. 

The event is also bound to put the Emirates at the forefront of sustainability as it has clearly placed green principles at the heart of its bid for the Expo. A nation-wide collaboration of efforts from private and public sector will help in the management of resources for the event. 

Renewed investor confidence is evident with Dubai properties seeing the fastest rising prices in the world. According to a Knight Frank report, prices in the emirate have increased by over 28% since the third quarter of 2012 compared to an average rise of 4.6% worldwide. Developers in the city are also revealing new exclusive projects, catering to the elite. Emaar Properties showcased its new Dubai Hills project to only 70 "super rich" investors, announcing that the villas would be priced Dhs30 million onwards.

However, with the rapid growth comes a warning for caution. Nouriel Roubini, a professor at NYU's Stern School of Business and chairman of Roubini Global Economics, has written a report warning that "signs of frothiness, if not outright bubbles" are reappearing in markets like Switzerland, Sweden, Norway, Canada and the UK. According to him Central Bank regulations may not be enough to reign in values going too high and countries still need to be careful of a slow-motion repeat of the 2008 housing bubble. Cluttons has also issued a statement, stressing the need for tighter regulations in the Dubai real estate market. 

 
Market Insight is aimed at examining the emirate's dynamic market and forecasting industry trends. The UAE's successful bid to host the world expo has been widely celebrated across the emirate by residents and property developers alike. It is clear that Dubai is working towards sustainable growth but tighter regulations might be needed as prices continue to increase. For construction companies across the country, the future looks good as confidence in the market has been renewed. We hope our round-up of key stories and expert opinions have helped in understanding the changes the emirate will witness as a result of the Expo 2020. We'll be following up on all of the latest developments to keep our readers updated. 

Sincerely,

Pashma Manglani

Editor


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Dubai tops list for fastest house price hikes

Dubai's property market has seen the fastest rising prices in the world over the past year to the end of September, a new Knight Frank report has shown.

Prices in the emirate have increased by over 28% since the third quarter of 2012,  according to the Knight Frank Global House Index, compared to an average rise of 4.6% across the 55 markets covered worldwide.

The index revealed that Dubai real estate values have jumped nearly 12% in the past six months and 4.5% since the previous quarter. 


Read more on Arabian Business

Better realty deals on offer

Property developers are now offering sweeter deals, attracting more end-users rather than just investors.

RSG International, a new entrant into the local market, intends to fund up to 50% of a buyer's funding needs from its own resources at the time of project completion. The developer also says that funding support will be interest-free and can be repaid over a 60-month period. 

"This incentive will be extended to any buyer acquiring a unit in our first project, the Qasr Sabah, at International Media Production Zone (IMPZ)," said Raj Sahni, chairman. He explains that up to 50% of the property's value will have to be paid by the buyer during the project cycle, including 20% at the time of completion. The remaining 50% can be provided by RSG International.

Earlier this year, Damac announced that it would offer free flights to investors to allow them to check out the property. 

 

Read more on Gulf News

Dhs174m contracts for Palm projects 


Nakheel has awarded contracts worth Dhs174 million for the construction of two new beachfront projects on Palm Jumeirah.

Nakheel appointed Union National Engineering Company to construct Azure Residences' 170 apartments and swimming pool under a contract of Dhs135.5 million (two-year timeline), while Al Ghurair Contracting and Engineering Works was awarded a Dhs38.6 million contract to build Club Visa - Mare (18-month timeline).

The 10-storey Azure Residences complex includes 170 one and two-bedroom apartments, an infinity pool, nine restaurants, gym and a car park. Club Vista Mare is spread over two floors and features 33 studio apartments, eight cafes/restaurants, a gym and retail facilities. 


Read more on Gulf News

Expo: A platform for sustainability 


Dubai has clearly placed green principles firmly at the heart of its bid to host the World Expo 2020. Private and public sector stakeholders in the emirate will need to band together and plan the management of resources for the event.

The event could translate to a lot of positive change not just for the city but for the Gulf at large, says Malek Sukkar, CEO, averda, the waste management consultancy. "In the run-up to the event, the city could benefit from an intensive awareness campaign to promote recycling supported by the necessary infrastructure."


Read more on Gulf News

17 properties to be auctioned off online
 

The Dubai Land Department is releasing 17 real estate properties for online auction, a first for the department. 

Potential buyers can browse through the auctions using eMart, a new portal developed by the department, which can be accessed through the Land Department's official website. Both residential and commercial properties are available for sale.

Traders can complete their property purchases and pay through Noqodi, an online wallet available to registered traders.


Read more on Gulf News

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